The economy of the state is based on agriculture and
marine products. Some traditional industries is based on coir and coir
products, marine products, handloom, different types of handicraft's,
toddy tapping etc.
Other prominent industries are handloom industry, Khadi and village industry
which produce Khadi, fiber, pottery, lime, paper, matches, gobar gas,
cane and bamboo. The important handicrafts of the state include ivory,
wood and bone carving, hand embroidery, cane and rattan works, coconut
shell carving and paddy straw picture making.
Alappuzha district is known as the traditional home of
coir industry in Kerala. There is coir Research Institute functioning
at Kalavoor. The national coir training and designing centre was also
established at Alappuzha in 1965.